DraftKings Accused of Using AI Models to Target Vulnerable Gamblers

DraftKings Accused of Using AI Models to Target Vulnerable Gamblers
DraftKings has utilized machine-learning models to identify customers most likely to lose money and strategically target them with promotional free bets to encourage continued wagering, according to an investigation by The New York Times.
The models reportedly scored users based on metrics like play frequency, account balances, and loss-to-wager ratios to measure how responsive they were to bonuses. While data teams optimized these promotional-driven margins, internal efforts by employees to build a parallel predictive tool designed to flag and protect at-risk or problem gamblers were allegedly shelved by management.
DraftKings rejected any implication of unfair marketing practices, stating that promotions are directed toward customers demonstrating sustained, engaged platform use rather than based on losses.